PTA Holds for IT Ministry’s Approval to Retrieve Rs. 78 Billion from LDI Companies

The Pakistan Telecommunication Authority (PTA) is currently awaiting a policy directive from the Ministry of IT and Telecommunication (MoITT) to reclaim Rs. 78 billion in overdue payments from Long Distance and International (LDI) telecom companies.

Documents from the PTA reveal that five LDI companies are prepared to pay the complete principal sum of Rs. 8.2 billion in installments. However, the recovery process has encountered delays stemming from inaction by the Ministry of IT, leading to a standstill in resolution efforts.

A total of Rs. 15.8 billion is currently owed by four LDI companies that have declined to pay their outstanding amounts. Furthermore, a total of ten companies face liabilities amounting to Rs. 54.5 billion due to late payment surcharges.

The Sindh High Court has intervened, placing a hold on the PTA’s actions against the companies until the matters surrounding their license renewals are addressed. The court has instructed the PTA to assess the renewal status of licenses that lapsed in 2024.

On December 4^th 2024, the PTA communicated with the IT ministry, seeking a policy directive aimed at addressing the issue by December 13^th, 2024. As of now, no directive has been issued, which has resulted in the PTA being unable to enforce payments or complete the renewal of licenses for the ten LDI companies.

Despite having expired licenses, enterprises continue their operations, bolstered by legal backing. The IT Ministry, which oversees the USF and APC funds, has called on the federal government to seek the Supreme Court’s intervention. The proposal suggests bringing together all cases related to LDI companies and designating a referee judge to ensure a prompt resolution, aiming to accelerate recovery and clarify legal and regulatory issues.

The issue has been further complicated by allegations of misconduct. Reports indicate that a policy directive released by the IT ministry last year was purportedly crafted to favor LDI companies, resulting in the dismissal of the former secretary.

The ongoing controversy, combined with the upcoming directive, has placed the PTA in a position of impasse as it strives to reclaim outstanding dues and uphold regulatory compliance within the telecommunications industry.